EOS (EOS) price prediction: $442?

EOS bills itself as “a blockchain protocol that enables horizontal scaling of decentralized applications, allowing developers to efficiently create high performance distributed applications.”

EOS’s competitive advantages

1) Industrial scale. EOS is designed to support “industrial-scale decentralized applications.” Decentralized apps and decentralized autonomous corporations will, in theory, operate without human intervention. To do that, scaling problems seem inevitable. Thanks to “horizontal scaling,” EOS should be able to support 50,000+ transactions per second [1]. That’s an eye-popping number with ethereum’s TPS hovering around 15 right now.

2) No transaction fees. Rather than incentivizing miners with transaction fees, EOS will use block rewards. Some cryptocurrencies use a combination of block rewards and transaction fees to incent miners. That could make EOS an “ethereum killer.” Why? The high price of ethereum is making it expensive to run and develop applications on the platform.

“Instead of being entitled to the amount of computation power that you are able to pay for on Ethereum, the EOS platform presents an ‘ownership’ model of entitlement of resources. If you own 1/1000 of the total stake of EOS, then you will always have access to 1/1000th of the total network bandwidth and storage.” [2]

3) Thumbs up from Wall Street. The first “official” cryptocurrency rating agency, Weiss Ratings, didn’t give out a single “A” rating. They gave out several “B” ratings: among the recipients were EOS, ethereum, NEO, and Cardano. All were rated higher than bitcoin’s C+!

The Oracle’s EOS price prediction/target

In Goldman Sachs’ 2018 Investment Outlook, the firm argues the bitcoin and cryptocurrency “mania” already dwarfs the famous Dutch “tulipmania” in the 1600s and the March 2000 dot-com bubble.

At the very end of the piece, they include this gem:

At the peak of the dot-com bubble in March 2000, the combined market capitalization of Nasdaq and S&P 500 information technology stocks was 101% of U.S. GDP and 31% of world GDP. The aggregate market capitalization of cryptocurrencies is 3.2% of U.S. GDP and 0.8% of world GDP.

If there’s one thing I’ve learned in more than a decade of investing in various assets, it’s this: markets go higher and fall lower than we generally imagine they will. While I don’t see cryptocurrencies ever hitting 101% of the U.S.’s GDP, I still envision at least one more extraordinary rise in prices for cryptocurrency.

Why? Because the public still thinks of crypto as a currency and a currency alone. The average investor hasn’t heard of ethereum yet (not to mention interesting projects like Golem, Gridcoin, Waves and more than 1,000 others). 2017 was the year of bitcoin. 2018 will be the year of blockchain.

My personal target is a $2 trillion market cap for all cryptocurrencies. If we hit that number, we’d be at just 10% of the $20 trillion U.S. GDP. Under that scenario (assuming current coin ratios stay the same), the price of EOS (EOS) would be around $43.75. If we hit 50% of the U.S. GDP, we’d be at $221.04 per EOS. At 101% of U.S. GDP, we’d be looking at a future EOS price of $442.08.

I don’t disagree with Goldman. We’re in the midst of an extraordinary bubble. I just disagree that we’ve already seen the top.

Side note: The U.S. debt-to-GDP ratio for Q4 2017 stood at 104 percent. Perhaps the true bubble we’re witnessing is government debt.

Caution: This post is does not account for currency inflation. Price predictions were calculated as if the total coin supply were capped at the time of publication.

About The Oracle

A blockchain fanatic since 2013. The Oracle believes we're just beginning to glimpse the transformative power of the blockchain.

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